Magal S3 offers the broadest portfolio of unique homegrown Perimeter Intrusion Detection Systems (PIDS) as well as Fortis 4G - a new generation of cutting edge Physical Security Information Management system (PSIM) with comprehensive CCTV solutions and leading Intelligent Video Analytics (IVA).This press release contains forward-looking statements, which are subject to risks and uncertainties. Such statements are based on assumptions and expectations which may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial and otherwise, may differ from the results discussed in the forward-looking statements. A number of these risks and other factors that might cause differences, some of which could be material, along with additional discussion of forward-looking statements, are set forth in the Company's Annual Report on Form 20-F filed with the Securities and Exchange Commission.
Three months Ended March 31, 2012 2011 % change Revenues $15,553 $11,540 34.8 Cost of revenues 9,100 6,932 31.3 Gross profit 6,453 4,608 40 Operating expenses: Research and development, net 1,032 1,017 1 Selling and marketing 3,783 3,226 17.3 General and administrative 1,503 1,593 (5.6) Total operating expenses 6,318 5,836 8.3 Operating income (loss) 135 (1,228) Financial expense, net (220) (155) Loss before income taxes (85) (1,383) Income tax (expense) 131 (200) Net income (loss) $46 $(1,583) Basic net earnings (loss) per share $0 $(0.15) Diluted net earnings (loss) per share $0 $(0.15) Weighted average number of shares used in computing basic net earnings per share 15,822,704 10,396,548 Weighted average number of shares used in computing diluted net earnings per share 15,883,086 10,396,548 Three months ended March 31, 2012 2011 % % Gross margin 41.5 39.9 Research and development, net as a % of revenues 6.6 8.8 Selling and marketing as a % of revenues 24.3 28.0 General and administrative as a % of revenues 9.7 13.8 Operating margin 0.9 (10.6) Net margin 0 (13.7)